Nest appoints Northern Trust as Fund Administrator and Custodian
May 13 2024 - 7:46AM
Business Wire
Northern Trust has been appointed by Nest as the new fund
administrator, helping the pension scheme coordinate its
investments across its diversified portfolio.
Through the newly awarded contract, Northern Trust will provide
key services for Nest’s investment strategy, including custody,
asset allocation and rebalancing, and performance measurement.
The new partnership will oversee substantial growth in Nest,
with the scheme forecast to pass £100bn AUM in 2030. This contract
is therefore of significant importance to the continued success of
Nest.
Statement from Mark Fawcett, CEO of Nest Invest:
“Nest is at an exciting point in our journey.
Within the coming years, we’ll likely be the largest UK pension
scheme by both AUM size and membership. We’ve needed to consider
how we manage that growth to ensure we continue delivering a
world-class service for our 13 million members.
“The fund administrator is one of our most
important contracts. It provides the platform to manage our growth
across our highly diversified portfolio, including enhancing the
member journey across our range of funds as we implement our
private markets program.
“Northern Trust really impressed us in what
was a competitive procurement. We have specific requirements for
asset allocation and rebalancing, and their capability to manage
sophisticated strategies is particularly strong. The flexibility
they can offer, to evolve the services we need around our future
growth, will be crucial.”
Statement from Ian Hamilton, Head of Asset Owners, UK at
Northern Trust:
“We are proud that Nest have selected
Northern Trust as their asset servicing partner to support their
evolving needs as they deliver on their long-term strategic growth
strategy. This mandate is testament to Northern Trust’s track
record in supporting complex asset owners deliver transformative
change and we are thrilled to partner with the UK’s largest Defined
Contribution Master Trust and a leading innovator in the pension
sector.”
Statement from James Wright, Head of Asset Owners, Europe,
Middle East and Africa (EMEA) at Northern Trust:
“Our appointment by Nest underscores Northern
Trust’s unwavering commitment to the retirement sector, and cements
our leadership position in supporting the increasingly
sophisticated needs of asset owners in the UK and across the EMEA
region. A leading asset servicing provider to pension schemes
around the globe, we are delighted to be partnering with Nest at an
important inflection point in the evolution of their business.”
Notes to editors
The current fund administrator contract expires in October 2025.
Nest will work with Northern Trust to ensure all key services are
transferred across ahead of this date, giving Nest time to test the
transition has been successful.
Services included within the contract:
- Custody
- Asset allocation and rebalancing
- Performance measurement
- Compliance monitoring
- Investment Tax
- Securities lending
- Securities class actions
- Financial accounting and reporting
- Data management (platform)
About Nest
Nest was set up to ensure every UK employer could offer a
workplace pension to their employees. Since then, it’s grown to
become the largest workplace pension scheme in the country with 13
million members and is set to be the largest by AUM - by the end of
the decade Nest is expected to have around £100bn assets under
management.
Nest wants to deliver the best retirement income for its
members, and has in place an award-winning investment strategy with
one of the most diversified DC portfolios in the UK. It continues
to expand its investable universe, including into private markets
which have typically been out of reach for the average UK
worker.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider
of wealth management, asset servicing, asset management and banking
to corporations, institutions, affluent families and individuals.
Founded in Chicago in 1889, Northern Trust has a global presence
with offices in 24 U.S. states and Washington, D.C., and across 22
locations in Canada, Europe, the Middle East and the Asia-Pacific
region. As of March 31, 2024, Northern Trust had assets under
custody/administration of US$16.5 trillion, and assets under
management of US$1.5 trillion. For more than 130 years, Northern
Trust has earned distinction as an industry leader for exceptional
service, financial expertise, integrity and innovation. Visit us on
northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust
or Northern Trust Corporation on LinkedIn.
Northern Trust Corporation, Head Office: 50 South La Salle
Street, Chicago, Illinois 60603 U.S.A., incorporated with limited
liability in the U.S. Global legal and regulatory information can
be found at https://www.northerntrust.com/terms-and-conditions.
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